J.P. Morgan downgraded Li Auto to Underperform from Neutral. The bank forecasts a 10% decline in sales and expects the company to report losses by 2026.
Rising costs for lithium, copper, and chips are pressuring margins, with some component prices up 30% to 50%. Li Auto shares fell 3% on February 9, 2026. Premarket and trading sessions reported deeper declines between 3.2% and 3.4%.
Analysts cut the price target for the stock by 22% to $14. The downgrade stems from intense competition, heavy discounting, and a lack of new vehicle models. Broader EV sector pressures and a slowdown in Chinese auto demand further amplify these concerns.